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Cannabis

Marsh’s cannabis industry specialists can help map and quantify your risks to allow for informed insurance decisions based on real-time data and knowledgeable advice, enabling you to compete with confidence.
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As the cannabis industry in Canada evolves, the risk landscape remains unsettled.

Regulatory issues, strained supply chains, cyberattacks, changing customer preferences, black market competition, and misunderstanding of the industry itself are just a few challenges facing cannabis companies.

As a result, cannabis companies are constantly adapting, exposing them to new and unexpected risks. They need a trusted advisor that can identify and address these risks before they affect the business, while also serving as an industry advocate in the insurance marketplace.

At Marsh, we collaborate with you to understand your business strategy and operational needs, and we help you assess your risk as a whole. Our local presence and global network enable you to tap into specialists who can create a customized insurance and risk management plan, fostering the right environment for your cannabis business to thrive, while the industry continues to find its footing.

Cultivators

Cannabis cultivation practices, techniques, and processes have matured and evolved over the years. The failure to properly understand and address traditional property and growing stock risks, along with new exposures, places your business and employees at risk.

Our risk specialists understand the business and operational needs of cutting-edge cultivators. We can help you identify and address these exposures through a collaborative and customized approach to your risk management.

Processors

As consumer tastes change, innovative processing techniques are necessary to meet the demand for new cannabis products.

Our risk specialists understand the health and safety and supply chain risks that cannabis processors encounter. We also can help you anticipate and manage new product and consumer safety, business interruption risks, and financial and operational challenges.

Retailers

It takes the right mix of desirable product, stable supply, good location, and ideal customer experience to be a successful cannabis retailer.

Our risk specialists collaborate with you to analyze your retail business exposures and formulate a risk management and insurance program that fits with your operational needs, financial goals, and regulatory requirements.

Testing laboratories

The number of laboratories running clinical trials investigating the medical benefits of cannabis for a variety of conditions is dramatically increasing globally.

Our unparalleled experience helping clients manage the risk exposures inherent in clinical trials, through our Life Sciences Center of Excellence, has been adapted for cannabis clinical trials specifically. We understand the unique business and regulatory environment in which you operate and can help you plan appropriately for the cannabis research risks and opportunities you face.

Property owners leasing to cannabis businesses

Leasing to a licensed cannabis business presents unique legal and regulatory requirements for property owners. It also can make obtaining cost-effective property insurance very challenging for those wishing to expand their leasing portfolio into this evolving sector.

Marsh understands these challenges and has developed specialized market solutions to support your risk management efforts with tenants engaged in the cannabis industry.

2009

One of the pioneers in the industry offering Cannabis insurance since 2009.

$60M

Over $60M in premiums placed annually.

FAQs

Cannabis companies typically require a variety of first- and third-party liability insurance. First-party cannabis insurance serves to protect cultivation and processing assets, while third-party cannabis insurance protects the company and management from liability associated with operations, clinical trials, or consumer products.

The majority of cannabis insurance claims are property loss claims driven by a variety of loss factors, including crop damage caused by production machinery breakdown and heating- or lighting-related fires. The largest driver of claims activity has been security holder class actions impacting directors & officers (D&O) policies.

Yes, there are a number of cannabis insurance coverage solutions for biological assets. In many cases, you can customize the coverage to fit your specific risk exposures.

Two of the main reasons for the limited availability of cannabis insurance are: lack of historical claims data and the legal status of cannabis in jurisdictions outside of Canada.

That said, Marsh has developed specialized market solutions to support your risk management efforts.

Yes, there are options and mechanisms available aside from cannabis insurance to transfer some or all your risk exposures, such as a captive or a parametric solution.

Marsh can assist in providing a quantitative analysis of your risk profile and help with data- and financial-driven decisions around your risk mitigation and non-insurance risk transfer options.

Yes, a variety of cannabis insurance and alternative solutions are available to cover finished stock, whether at your processing facility, in transit, or at a distribution centre.

Our people

Cory Verconich

Cory Verconich

Cannabis and Life Sciences Industry Leader Marsh Canada

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Shelley Almeida

Senior Vice President Life Sciences Marsh Canada

Esther Wiltshire

Esther Wiltshire

Senior Vice President Marsh Canada